FaZe Clan is considering going private just a year after the esports organization appeared on the Nasdaq exchange.
FaZe, like the rest of the esports industry, hasn’t been doing too hot. The organization cut 20% of its employees by February of 2023 thanks to the “very different economic environment.” FaZe Clan has also been dealing with some internal struggles as long-time members like Jakob “Teeqo” Swaerden have
come forward with frustrations.
Even FaZe Clan itself has been open about these issues.
“We know that for too long we haven’t been the FaZe we need to be, but we’re working hard towards fixing that,” the org said earlier this month. “We hope to have all the OGs sit down together soon, and we don’t want to do that without everyone. We’ll do everything in our power to work this out and not let you down.”
FaZe Clan went public in July of 2022, which allowed fans to own a piece of the controversial organization. By August, the share price peaked at $20. It was clear that esports fans were excited about the future of the industry and FaZe, thanks to its successful teams and streamers.
But FaZe Clan’s stocks have continued to drop. A
report
last year showed that most of FaZe’s money was tied up in obligations — the org may not have been as lucrative as young fans believed based on the hype.
Now,
Sports Business Journal
has revealed that Faze is considering a restructuring “that would make it private.” This would be a mere eight months after going public on the Nasdaq exchange. While it was the first esports company to hit a $1 million valuation at one point, the org is currently trading at just 53 cents a share. A few days ago, it was at 37 cents.
“You could say it’s their own doing, and they f—ed us by jumping in and giving that a shot, their lack of success on the market is a terrible thing for the esports industry,” he said on his stream,” 100 Thieves CEO Matthew “Nadeshot” Haag said about FaZe’s stock price.
So what’s next for FaZe? Right now, the org has $43.9 million in cash assets, which would only fund the org until November 2023. FaZe will be releasing its financial results for the end of 2022 in a few days, which will give even more insight into what’s next for FaZe Clan when it comes to going private and running their org.
Olivia Richman
About Olivia Richman
Olivia has worked in media ever since graduating from college, with her coverage ranging from traditional newspaper reporting to digital coverage of all things gaming, online betting, and nerd culture. She has traveled around the world pursuing that coverage, from the far coasts of the United States to the busy downtown core of Tokyo, Japan. Olivia’s favorite games include Overwatch and Super Smash Smash Bros, and she has been published at Esports Illustrated, Inven Global, EsportsInsider, Upcomer, and elsewhere.
Big Wins
Twitch
Slots
News
News
News
Kick